Cannabis-Related Stocks Take A Hit After AG Jeff Sessions Announces Plans To Go After Legal Marijuana
Just this week,...
AG Jeff Sessions rescinded previous guidances that had permitted states to legalize cannabis with little-to-no federal interference in the matter. And a number of states, like Colorado and Washington, have legalized cannabis for either recreational and/or medicinal purposes.
You can now find thousands of dispensaries in different states around the US, despite it still being a federally prohibited substance.
Since Sessions decided to make that announcement, cannabis-related stocks have taken a dive, with some of them seen to be falling as much as 35 percent or more.
Terra Tech is known as the largest US pot stock and it's been down about 35 percent since the news came out. Whereas Canopy Growth Corp is the largest Canadian cannabis stock and it's been down about 9.9 percent.
However, industry analysts are suggesting that this recent announce by Sessions isn't going to ease the nerves of investors who up until now might have been unsure about getting invested in this market industry. With the worry about whether or not the federal government can crack down at any moment, it's no wonder why that would scare some investors away.
Aside from that concern, there are other challenges as well that come along with investing or working in this market space, such as trying to find financing, insurance, banking help etc. Many banks are unwilling to deal with entrepreneurs, lawyers, investors etc, who are involved in the cannabis industry because of the federal war against the plant that is still going on and has been for decades.
At the moment, many cannabis advocates aren't taking the threat too seriously.
This is because a great deal of people have demonstrated support for legalization for either medicinal or recreational purposes and they hope that prosecutors and law enforcement are going to focus on bigger threats.
Prohibition still doesn't work...
One area in the US that's referred to as the marijuana capital of the country is Humboldt, California.
Here you can find many different growers, some who've been doing it for many decades while many others who've only recently gotten on-board since the switch to legalization. Police in the region have used incredible amounts of resources trying to crackdown on these growers and according to their own statements, while they are busy closing one or two of those growers, there are dozens of other ones that are popping up at the same time. It's like playing whack-a-mole, and they'll never be able to keep up.
You can see the same thing with dispensaries, who after being closed are able to open up within just a few hours or the next day, trying to continue with business as usual. What else might have been accomplished with the more than $1 Trillion that has been spent on the war on drugs ? And despite all of that effort, the drugs are still winning and it's the American people who've lost and continue to lose; so long as lawmakers and enforcers bother themselves with matters that shouldn't concern them.
Pics:
via consumerreports.org
via tumblr / the-anarcho-raver
via google finance
Tumblr via EndTheDrugWar
Sources:
https://www.vox.com/policy-and-politics/2018/1/4/16849866/marijuana-legalization-trump-sessions-cole-memo
https://www.vice.com/en_us/article/43qnpn/even-republicans-hate-jeff-sessionss-new-weed-policy
https://finance.yahoo.com/news/heres-one-industry-trump-harming-194437152.html
https://finance.yahoo.com/news/marijuana-stocks-getting-slammed-reports-154718568.html
https://www.theglobeandmail.com/globe-investor/investment-ideas/marijuana-analysts-arent-too-worried-about-the-attorney-generals-order-just-yet/article37505937/
https://www.rollingstone.com/politics/news/why-america-cant-quit-the-drug-war-20160505
https://www.forbes.com/sites/artcarden/2012/04/19/lets-be-blunt-its-time-to-end-the-drug-war/#6794ee14ea35
Related Posts:
Grandma Says Cannabis Is The Secret To Her Health
https://steemit.com/cannabis/@doitvoluntarily/grandma-says-cannabis-is-the-secret-to-her-health
A person would think Mr Magoo from the Department Of Jackasses could find something better to do with (OUR MONEY AND RESOURSES). A left over execitive order jammed down our throats by a criminal (NIXON). This is nuts. I can look around and see nothing but criminals passing laws taking bribes and walking away free and clear. The FBI the DOJ And the entire corrupt system needs to go back to common sense. And go back to where it started. Was checking out the Convention of states. A good idea yet if you look further into it. More politions trying to grab more power. This needs to change. Someone needs to change all this B.S. It saddens me to see the waste and how they use the system againts us.
LOL! that's for sure
Thanks for sharing. I work in the recreational cannabis market with high-end investors where I live and the DOJ announcement shook things up for a minute. There was a bit of a shock wave in my community because we have so much invested in it. Fortunately our attorney general is stepping up and has indicated they will protect us, although I am not so sure about that. I believe that stocks are going to be like how it is for us everyday in the industry; up and down and up and down until all this gets settled. Cannabis needs to be re-scheduled and allowed to be transported across state lines so kick ass growing regions like man can distribute legally to other states. Fortunately the movement is already too far along as Maine just passed some new laws in the face of the DOJ. So there you go. Thanks for keeping us up to date. Stocks in this sector are tough right now.
I bet Sessions and his friends shorted Cannabis stocks before the announcement.
Very good article on marijuana. In my country of residence it is also strictly forbidden to use, plant and buy marijuana. Thanks for sharing @doitvoluntarily.
Prohibition has never worked and never will. Fedgov will send out nasty threatening letters to all the dispensaries and sales outlets, and if they have any cajones they'll just throw 'em in the trash.
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Great writeup, resteemed, yes alcohol is the bigger problem never heard of a stoned guy go home & beat his wife
thx for checking it out!:)
ugh whhyy?! It hurts to see this stupidity, hopefully those law enforces focus on those bigger threats!
you can say that again!
@doitvoluntarily
I provide coverage on investing in the marijuana sector and have posted a blog today on Steemit talking about the same thing, how Cannabis stock sold off in the last 2 days. For the most part, I think the sell-off is done, but it will take some time for the US related marijuana stocks to recover, Canadian MJ stocks have pretty much recovered their losses from yesterday's news.
This news announcement by Sessions may have been in the works for some time, and I wouldn't doubt that insiders knew this was coming. This could explain why lots of buying came into the Canadian MJ sector last week, which should have been the slowest trading week of the year, but yet the MJ stocks in Canada rose significantly.